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Politics Northwest
Senate committee approves bill allowing local gas taxes, vehicle fees
A Senate committee has passed a bill that would allow counties and cities to raise fees and taxes for transportation improvements.
Under Senate Bill 6582, counties and cities could choose from several fees and taxes: a 1 percent annual motor-vehicle excise tax, a $40 annual car-tab fee, and a local gasoline tax of up to 3 cents a gallon.
The bill, sponsored by state Sen. Mary Margaret Haugen, D-Camano Island, passed in the Senate Transportation Committee Tuesday.
The car-tab fee could be imposed by city councils and county commissions without going to voters, but the gasoline and excise taxes would require voter approval.
“One of the biggest problems we have is finding something that works for the state,” Haugen said. “What works for one county may not work for another.”
The proposed 1 percent motor-vehicle excise tax drew the most comments Tuesday at the transportation committee. If passed by a local government and approved by voters, an owner of a vehicle valued at $10,000 would have to pay $100 a year.
State Sen. Curtis King, R-Yakima, said the tax is “not fair and not equitable.”
However, Tracey Eide, D-Federal Way, said she’d be “more than happy to pay the fee,” if it’s used for projects that encourage more people to use public transportation.
Cities and counties could approve either a car-tab fee or the motor vehicle excise tax, not both.
Cities and counties currently can impose a $20 car-tab fee without getting voter approval. The bill would increase the amount allowed without voter approve to $40.
Haugen’s bill would also allow cities and counties to collect 1, 2 or 3 cents per gallon in gasoline and diesel taxes — also with voter approval.
The city and county gas taxes combined couldn't exceed 3 cents and must be used for roads, under the state constitution.
Amber Carter, government affairs director for Association of Washington Business, testified against the bill at a hearing in the Senate Transportation Committee last week.
She said imposing a local gasoline and diesel tax would put local businesses at a disadvantage and that a statewide tax approach would be more appropriate to fund transportation projects.
The bill now goes to the Senate Rules Committee.
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